Chainlink Price Analysis: The Crucial Support Level for a Potential 20 Dollars Surge

Chainlink (LINK) has retraced 7.6% from its yearly peak of $16.7 on November 11. Despite encountering robust support around $15, indications suggest a growing momentum for another upward trajectory.

Chainlink Price Analysis: The Crucial Support Level for a Potential 20 Dollars Surge

The Chainlink network is witnessing substantial expansion, with large holders showing a commitment to retaining their LINK tokens. Notably, the network’s growth has been remarkable. Since early September, the daily count of new and unique addresses engaging in transactions for the first time has consistently marked higher highs and higher lows.

This count has surged from a low of 467 new addresses per day to a peak of 3,044, indicating a remarkable 650% increase within three months. Such a notable rise in user adoption over this period hints at the potential for future price gains. The escalating demand is further evident in the actions of cryptocurrency whales. Between November 28 and November 29, whales acquired over 9.6 million LINK, equivalent to approximately $143.3 million.

Chainlink Price Outlook: Robust Support, Fragile Resistance

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model proves helpful in pinpointing the average price at which tokens were acquired and compares it with their present value. By categorizing these addresses into groups, the model identifies crucial buying zones using on-chain data, expected to function as either support or resistance levels.

As per the IOMAP analysis, Chainlink encounters a notable supply barrier before further upward movement. This resistance zone is situated between $15.8 and $16.3, where 9,140 addresses previously bought over 11.4 million LINK. To target $20, Chainlink needs to secure a daily candlestick closure above this level.